E+B Successfully Defeats Motion to Remand in Dallas Federal Court

Weber Paradise Apartments, LP. v. Lexington Insurance Company, et al.; Civil Action No. 3:12-CV-5222-L

On May 23, 2013, in a widely reported ruling favorable to an insurer and its adjusters, a U.S. District Court Judge denied the insured’s motion to remand a first-party property insurance case to state court. The plaintiff initiated suit in Texas state court, alleging breach of contract, bad faith, and various statutory violations against its insurer, its insurer’s independent adjusting company, and that company’s individual adjuster. In finding that the individual adjuster was improperly joined, the Court applied Texas pleadings standards and held that the plaintiff failed to plead specific facts that would support the theories of recovery stated in the plaintiff’s petition. The Court specifically noted that “[t]here is no fit between the unclear and conclusory allegations in the Petition and Plaintiff’s theories of recovery. Even with a liberal reading of the operative allegations of the Petition, the court has to guess, speculate, and strain to determine whether a reasonable basis exists to predict that [the individual adjuster] might be liable to Plaintiff on the claims as pleaded.”

You can view the full text of the Court’s order HERE